Google Quickly Reverses Course On Flying Solo In China

from the not-going-it-alone dept

Although the large Chinese market seems to hold a lot of promise for American internet companies, there's no doubt that most of the big ones seem to be struggling there. eBay recently waved the white flag, admitting that its China business was basically going nowhere. Google, too, has failed to see the same success in China as it's had elsewhere around the globe. The company was an early investor in market leader, but pulled out to focus on Google China, which remains a laggard. Still, just last week, the head of its China operations, Kai-Fu Lee, insisted that the company would not partner with any domestic companies, as Yahoo did with local firm Alibaba, last year. Well, Google's solo ambitions didn't even last until the end of the year, as the company has invested in video download firm Xunlei. Considering how much money Google's already invested in the video space, it's a testament to the difficulty of the Chinese market, that Google still felt the need to invest in a regional player. And if the company is willing to abandon its go-it-alone strategy in video, it seems likely that they'll do the same in other areas, if they don't start to gain any traction.

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  1. identicon
    Bill, 31 Dec 2006 @ 3:58pm

    Hold Out

    Nothing will happen in China until there is a major shift in politics. I think it is wise for a company like google to hang in there. Something has to eventually break free.

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